In this exercise, students will be assigned a role as either an exporter or an importer. You will be e-mailed your specific scenario as either the exporter or importer and information on your negotiating counterpart.
The goal of the exercise is to negotiate an INCOTERM that is satisfactory to both parties (although one party may be more satisfied than the other based on channel power, organizational contracts, etc.). Each student should then submit a written document of one page or less that provides the following:
Student name and role (i.e., exporter or importer
Negotiating counterpart
Complete INCOTERM
Brief explanation detailing why this INCOTERM was selected
Any concerns you have with the selected INCOTERM and why (Note: If fully satisfied with the negotiated outcome simply indicate that you have no concerns with the negotiated INCOTERM.)
In the event you are unable to reach an acceptable INCOTERM, then instead of the “Complete INCOTERM” indicate “Unable to reach agreement.” Then in the “Brief explanation” explain why you think you were unable to reach agreement.
For this assignment, you are designated as either the exporter or the importer – as indicated below. The scenario describes the product and situation. You are to contact your negotiation partner and work out a suitable INCOTERM for the described shipment. If you cannot reach agreement then there will be no transaction. After reaching an agreement or deciding not to do business, use the provided PowerPoint slide template to concisely indicate the chosen INCOTERM and the primary reasons for the selection. Students will be randomly selected to present their decisions for discussion.
Your position: IMPORTER
Scenario: Triacton Inc. is a Miami-based flower distributor. It sells only in the American market. Although Triacton buys from U.S. growers, the bulk of its stock is imported. Triacton receives daily shipments from overseas growers. Columbian growers currently provide the bulk of Triacton’s imported flowers. This is not surprising as Columbia is by far the largest provider of foreign flowers in the U.S. market. Ecuador is the second largest source of imported flowers in the U.S. market. Looking to diversify its sources, Triacton is in discussions to buy roses from Farin Roses of Tabacundo, Ecuador. Triacton buyers have requested information from Farin Roses on the types of roses available, costs, and terms of sale. Triacton is looking for shipments twice a week.
